"In the second quarter our long-term strategic investments in the company's growth initiatives again helped drive strong revenue performance," Palmisano said in a statement. "As IBM begins its second century, we continue to lead in the future and deliver higher value to our clients and our shareholders."

IBM saw growth across the breadth of its product portfolio--a sign that enterprise spending on IT products and services is holding up despite uncertainty about the broader economy.

Total services revenues increased 2%, after excluding currency-related gains, to $15.1 billion. The company's services backlog as of June 30 was $144 billion, up $2 billion from the previous year excluding currency. Software sales rose 10% year-over-year, to $6.2 billion, while revenue from sales of servers, mainframes, and other hardware was up 12%, to $4.7 billion.

IBM shares were up more than 2% in after-hours trading. The company's shares closed down 0.15%, to $175.28, in regular trading Monday.

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